| China auto market was booming in the past 10 years,which expanded to 10 times bigger.It attracted many new competitors to the market,and brought more competition.The vehicle products' performance became similar,while the price was dropping.Therefore,the cost was considered as the key factor to the program's competitiveness.With the pressure from market competition,Auto companies should establish an effective cost management procedure,in order to build up their own competitiveness.As proofed by many researches,the product developing phase costs only 5% but it will affect 80% of the total program cost.Thus,companies should consider developing phase cost management as the most important.To improve or innovate the developing phase cost management procedure will bring companies with adaptive capacity to the environment,advantages in competition,success in strategy.The thesis studied domestic and foreign cost management research progress,and the current cost management practice in F company and summarized the issues.Meanwhile,it provided improvement ideas to commodity cost estimate method and program cost management procedure.Firstly,it studied commodity cost estimate method.Then it proposed Optimal Cost Estimate concept and cost estimate process based on ABC theory.Secondly,it provided the improvement ideas on target setting and cost control procedure.Based on existing top-down affordable target setting,it proposed to add bottom-up cost target setting,which will build up the derived cost target.The derived cost target will evaluate the effectiveness and feasibility of adorable target.The bottom-up target setting will start from the lowest cost design from market and add required cost variances to meeting program specification and feature requirements.During cost delivery phase,team work closely with supplier to modify design towards the cost target.The optimal cost estimates will compare with supplier's quote breakdown,in order to identify cost improvement opportunities. |
PDF Full Text Request